Paper money market back in full swing thanks to continuing strong auction results

Paper Money Market Analysis from the Dec. 1, 2014, issue of Coin World

This Series 1882 $20 gold certificate, graded Very Choice New 64 Premium Paper Quality by PCGS Currency, sold for $199,750 at the Stack's Bowers Galleries Oct. 30 auction during the Winter 2014 Baltimore Expo. Images courtesy of Stack's Bowers Galleries.

Between the Baltimore expo auction held by Stack’s Bowers Galleries
Oct. 30 and the upcoming Lyn Knight auction at the Nov. 20 to 22
Professional Currency Dealers Association convention outside Chicago,
market activity is back in full swing.

The Baltimore sale registered prices realized totaling $1,655,000.

The most impressive large-size type notes included the finest known
Series 1882 $20 gold certificate with a triple signature (Friedberg
1175a in Paper Money of the United States by Arthur L. and Ira S.
Friedberg), graded PCGS Currency 64 Premium Paper Quality. It had been
off the market since Stack’s sold it in 1990 for a then-stratospheric
$20,900. As a sign of how the paper money market has outpaced
inflation, when it was all over at the October 2014 auction, its new
owner parted with $199,750.

Also worth noting was a Series 1869 $50 “Rainbow” United States note
(F-151). Just over 60 of these are known, and even in a modest Very
Fine 20 grade assigned by Paper Money Guaranty, it sold for $41,125,
on target with its $30,000 to $50,000 estimate.

Stack’s Bowers director of currency Peter Treglia said that he was
“overall … very pleased with the sale.” But despite the incredibly
high average price per note, he pointed out that “generic lower to
mid-grade type notes have softened up a bit compared to our [August]
ANA sale.”

Why this happened is an interesting question with no sure answer.
Perhaps, he points out, the paper money market is reflecting the
present coin market, or perhaps buyers are slowing down as the year ends.

It is also possible that the massive amount of inventory introduced
to the market in recent months was a factor.

Lyn Knight sale

The Knight auction will offer over twice the number of lots offered
in the Stack’s Bowers sale and is especially strong in national bank
notes. Foremost among the nationals is a rare PCGS Currency About
Uncirculated 50 (with some edge repairs) F-387 Original Series “Lazy
Deuce” from Denver’s Colorado National Bank. It is one of six known
and one of the few Colorado territorial notes. Its estimate of $50,000
to $70,000 is not out of reach.

The Commission of Fine Artsâ recommendation for the Proof 2014 American Eagle platinum coin, left, brought outrage and derision at the Citizens Coinage Advisory Committee meeting. The CCAC recommended the design to the right.

The Commission of Fine Artsâ recommendation for the Proof 2014 American Eagle platinum coin, left, brought outrage and derision at the Citizens Coinage Advisory Committee meeting. The CCAC recommended the design to the right.

The Commission of Fine Artsâ recommendation for the Proof 2014 American Eagle platinum coin, left, brought outrage and derision at the Citizens Coinage Advisory Committee meeting. The CCAC recommended the design to the right.

The Commission of Fine Artsâ recommendation for the Proof 2014 American Eagle platinum coin, left, brought outrage and derision at the Citizens Coinage Advisory Committee meeting. The CCAC recommended the design to the right.

The Commission of Fine Artsâ recommendation for the Proof 2014 American Eagle platinum coin, left, brought outrage and derision at the Citizens Coinage Advisory Committee meeting. The CCAC recommended the design to the right.